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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: HiSpeed who wrote (5583)	9/17/1998 8:46:00 PM
From: B.REVERE	Read Replies (1) \| Respond to of 9523

Hispeed, if I think the market will head down during a timeframe, I think its less risky to sell the calls then buy the puts. If I'm wrong on the direction and the market goes up, I've limited any profit I get by my stock improving in price. I would buy back the calls if they were at least 3/4 in the money otherwise they could call away my stock. For instance, the oct 105's were around 3 earlier today. By selling them now, pfe would have to go to 108 before I started seeing any profit erosion. I will probably buy these back before the earnings report. However, if pfe is in the low 90's at that time , I wouldn't bother covering the call. With a put, you still have to factor in time loss value, and with the call, time is in your favor. Just mho, but works for me. Later, BR